Advertising (Then and Now)
In the past, advertisements were bombarded on newspaper columns, printed on flyers, plastered on walls and playing on our box televisions. The rise and advent of technology has transformed these traditional forms of advertisements into data centric and technology focused publishing.
In her article, Stephanie talks about the origins of marketing and advertising as well as the current channels for advertising. She highlights the radical transformation in the advertising industry that likened a wildfire
So what is advertising like now?
Digital Advertising is looking to dominate advertising spending in media, growing at an average of 16.9% annually from 2018 (eMarketer, February 2019). With greater innovation amongst artificial intelligence, automation, mobile, internet and streaming usage, data etc. the reach and preference of digital advertising is bound to grow exponentially.
Source: Evolution of Digital Advertising (AdScholars)
The growth of advertising technology (AdTech) comes in tandem with the growth of digital advertising. Each key players within the ecosystem of AdTech play an integral role in the entire process of sourcing, channeling and tracking digital advertisements.
Unlike traditional advertising, tapping into Ad Tech softwares assisted by influential data allow agencies to make optimal placements of ads at suitable context to the right user.
See how the AdTech Ecosystem work - Interactive Flowchart
The Ecosystem of Advertising Technology
Source: MartTech Advisor
Trends and threats
The unique features of digital advertising include (being):
Trackable
Unlike traditional ads, advertisers can easily tell if their ad was effective such as measuring the click-through rates and customer-lifetime-value.
Interactive
Gatorade brought its ongoing sponsorship with Williams to Snapchat, the company came out with an animated sponsored lens which garnered around 160 million impressions on Snapchat.
Can be personalised
Hyper-specific targeted experiences driven by data will benefit a customer by matching his or her interests, and the company will gain greater efficiency from its marketing spend.
Extensive reach
As of 2021, 85% of Americans own smartphones, up from just 35% in 2011, and in 2020 mobile advertising accounted for an approximately 70% share of all internet advertising revenues.
Runs 24/7
However...
The change in the use of personal data by phasing out the use of cookies has challenged advertisers to look for new ways to "push the ad industry to adopt targeting technologies that are more conscious of consumer privacy" Yashina Burns, Director, Data Privacy and Legal Affairs, DeepIntent.
According to the Media Dynamics Study, the average adult is exposed to 5,000+ brands and their advertisements throughout the day.
To ensure successful advertising on digital platforms, it is essential that advertisers rely both on data and personalisation, to drive contextual and customised experiences. This reduces the inefficiencies from mass targeted ads , and maximises key point interaction with users.
The future of Advertising Technology
The increasing multitude of avenues whereby digital advertising can penetrate is increasing, this includes mobile, video, customised and programmatic advertising. Furthermore, the introduction of 5G and the exciting development of Artificial Intelligence only seems to propel the possibilities, interface and experiences that Digital Advertising can offer.
Infographic Sources: Statisica